Auction update: Activity to pick up
New CoreLogic data has forecast a slight increase on the number of homes set to go under the hammer.
For the week ending 23 August, CoreLogic predicts 1,144 homes to go to auction across the combined capital cities, marking an increase from 1,046 auctions last week. Year-on-year, this result is lower, however, with 1,415 homes going to auction during the corresponding period in 2019.
Breaking down the capital cities, CoreLogic is tracking 679 auctions in Sydney, followed by 235 in Melbourne, 82 in Brisbane, 64 in Canberra, 62 in Adelaide and 22 in Perth.
“In Sydney, 679 auctions are scheduled across the city, up on the 668 last week and also higher than scheduled volumes from one year ago (503). The number of Sydney auctions has been trending higher over the past three months and auction volumes have been consistently above last year’s level since the last week of June,” CoreLogic said.
“There are 235 Melbourne homes scheduled for auction this week, an expected rise on last week’s volumes (191), which saw 33 per cent of auctions withdrawn from the market. The low auction volumes aren’t surprising, considering stage 4 restrictions remain in place.
“Across the smaller cities, scheduled volumes are set to be higher across all cities but Tasmania, where no auctions are scheduled in for this week.”
A summary of last week’s results showed that the final combined capital city clearance rate “remained steady at 58.4 per cent, the third consecutive week around this level”.
“The number of auctions held over the week, however, was lower with 1,046 capital city homes taken to auction, down on the 1,150 over the week prior. One year ago, 1,228 auctions were held, returning a final success rate of 73 per cent,” CoreLogic noted.
Melbourne recorded a lower than average clearance rate, with 53.7 per cent of auctions returning a successful result.
“Of the 190 results collected, 33 per cent reported a withdrawn result, which was higher than the 23 per cent withdrawn over the week prior,” CoreLogic said.
“The high withdrawal rate is the main contributor to the lower clearance rate over the week. Of the 102 sold results collected, 55.9 per cent reportedly sold prior to the scheduled auction date.”
Meanwhile, Sydney saw a final auction clearance rate of 61.9 per cent for the previous week. Canberra was again the best-performing capital city, recording a 70.7 per cent final clearance rate. This marks the fifth consecutive week the city has experienced a final clearance rate above 70 per cent.
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